Most stocks and the dollar ticked up on Thursday as traders took some heart from trade talks between the U.S. and Japan, though the positive mood was curbed by Federal Reserve Chair Jerome Powell saying the Fed would be cautious about cutting interest rates.

President Donald Trump cleared some of that uncertainty on Monday night, saying the government has "essentially approved a budget" that would allocate about $1 trillion to defense. Defense Secretary Pete Hegseth followed up on the X social media platform, confirming the $1 trillion figure.

The Nikkei Stock Average rose 0.6%, with electronics and heavy industry stocks leading gains. TDK added 3.3% and Advantest gained 2.1%, while Kawasaki Heavy Industries advanced 3.5%.